Question: 28. The following data are available relating to the performance of Long Horn Stock Fund and the market portfolio: The risk-free return during the sample

28. The following data are available relating to the performance of Long Horn Stock Fund and the market portfolio: The risk-free return during the sample period was 6%. Calculate the Jensen measure of performance evaluation for Long Horn Stock Fund. Average Return: Long Horn 19% Market portfolio 12% Standard deviations of return: Long Horn 35% Market portfolio 15% beta: Long Horn 1.5 Market portfolio 1.0 Residual standard Deviation: Long Horn 3.0% Market portfolio 0.0% Question 8 Answer a. 1.33% b. 4.00% c. 8.67% d. 31.43% e. 37.14%

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